[2] Local governments in Malaysia have limited autonomy, including the authority to collect assessment taxes, enforce by-laws, and issue licenses and permits for trade within their respective areas.

They are also responsible for providing basic amenities, managing municipal waste, and overseeing urban planning and development within their jurisdictions.

However, in more urbanised states like Selangor and Penang,[4][5][6] local government areas may either overlap with or encompass neighbouring districts.

The British in 1801 established a Council of Assessors in Penang, charged with the role of planning and developing the municipality area, and was the basis of local government in the then Malaya (present-day Peninsula Malaysia).

After Penang, local councils were established beginning with Malacca, followed by the Federated and the Unfederated Malay States, finally extending to the Kingdom of Sarawak and North Borneo.

[10] The constitution of the new country after independence from Britain gave the power to control local governments to the states.

In addition, the Indonesian confrontation against the formation of Malaysia in 1963 has forced the federal government to suspend local council elections in 1965.

Problems faced during the early 1960s were further aggravated by a plethora of local government entities in the country at that time.

A Royal Commission of Inquiry to investigate the working of local governments in West Malaysia was established in June 1965 for this purpose.

The commission was headed by Senator Athi Nahappan while its members were D. S. Ramanathan, Awang Hassan, Chan Keong Hon, Tan Peng Khoon and Haji Ismail Panjang Aris—all were prominent politicians of the Alliance, the ruling party of the country.

In the early 1960s, a local government was considered as another channel in exercising one's democratic right - apart from electing representatives to the parliamentary and state assemblies.

[11] However, a constitutional amendment was made in 1960 that provides for the establishment of a consultative committee called the National Council for Local Government.

Constitutional provision aside, there are many laws passed by the parliament to control the operation of local government in Malaysia.

This act of parliament outlines the form, organisational structure, functions and responsibilities of a local council.

Article 95D of the Malaysian Constitution however bars the Parliament to create laws pertaining land and local government for the states of Sabah and Sarawak.

These so-called modified local authorities were established under newly created, separate and special Act of Parliament or state enactments or ordinances.

The types were: Among the basic criteria for granting City status on a local government is that it has a minimum population of 500,000 and an annual income of not less than RM 100 million.